Issue link: https://epubs.iltanet.org/i/30285
client or matter. Law firms in the United States find that they are also occasionally subjected to client audits. The imaging component addresses this issue, as the system can produce the backup documentation to any set of bills. In the absence of digital storage, this would be accomplished by a labor-intensive process of manually finding each underlying expense claim, copying the receipts, and then assembling. Digital storage cuts down on the amount of paper documents moving between offices, which eliminates paper flow, missing documents, filing and storage costs. Furthermore, with a system that covers all offices within a firm, worldwide procedures can be enforced, resulting in a uniform policy across the firm. “Compliance decisions are often in the hands of the least experienced and lowest compensated employees” BETTER EXPENSE INFORMATION, BETTER SPENDING DECISIONS An automated expense management system has the potential to be a valuable source of financial metrics. For instance, the information captured can be used to analyze business by vendors. When negotiating rates for a hotel in a particular city, accurate information on travel and hotel stays in that city over the last year can be key in the negotiation. The same can be said about rental cars, airlines, etc. Business development expenses such as who attended meals and events can also be captured. Lawyers can categorize business development activities in a manner that can be used for later 28 Financial Management ILTA White Paper analysis (e.g., client versus potential client; meals and entertainment versus seminars and speaking events). Many firms say that their expense reporting system is the only perfectly accurate and complete source of business development information. According to a director of finance in one large firm, his accounts payable clerks no longer have to come to him with questions like “Where did they eat this meal and who were they with?” or “Is that allowable?” He notes that it takes away much of the guesswork, and forces employees to be clear on where they put their money. Finally, it makes reimbursement effortless. According to the March 2011 Expense Management for a New Decade study from research firm The Aberdeen Group, visibility into aggregate T&E and expense spending presents executives and other key stakeholders with the necessary view into all spending expenses across the organization, which in some cases allows near real-time access to spending against existing budgets. Automated expense management solutions often have the ability to reveal or report on real-time information that can be invaluable to practice group leaders. Instead of seeing how the budget was spent last month, users can secure details on activity as it is happening. In a timely and efficient manner, expenses can be easily approved by practice group leaders while they understand how their budgets are being spent.